1. TATA TEA
In 1986, he bought 5,000 shares at Rs 43, which rose to Rs. 143 in a span of 3 months.
Made a neat Rs. 5lacs.
2. SESA GOA (now VEDANTA)
Initially bought at Rs 28, thereafter pyramiding at Rs 35.
The stock rallied to Rs 65 in a span of 4months.
By now he had made Rs. 25lacs.
3. TATA POWER
Using the Rs. 25lacs,he bought TATA POWER at Rs. 150 and it rallied to Rs. 1000 thereby making a neat Rs. 2.5-3crs.
4. 1989's budget was a game changer for RJ.
Prior to the budget the stocks had been hammered.
RJ's hunch was the upcoming budget wont be a disappointment & hence he staked Rs. 3crs. & made Rs. 20 crs. by the end of the budget.
In 2002-03, he bought Titan at an average price of Rs 3 and CMP is Rs 2703.
He is holding over 4.5 crore shares of Titan.
He has an overall holding of 5.1% in the company as of Dec 2021.
In 2006, he invested in LUPIN at an average purchase price of Rs. 150.
Today, LUPIN is trading at Rs 765.
1. BEL: Bought at Rs. 18 and sold it at Rs. 1200 in 2007.
2. BEML: Bought at Rs. 30 and sold it at Rs. 1200.
3. SCI: Bought at Rs. 20 and sold it at Rs. 200.
Other multi-baggers: CRISIL, PRAJIND, AUROPHARMA, NCC, TATAMOTORS, DBREALTY, ANANTRAJ, APTECH etc.
In 2005-2006, RJ partially sold his shares of CRISIL to purchase a house worth Rs. 27 crs.
Today that house is worth Rs 45 crore.
If he hadn't sold his shares of CRISIL, it would have been Rs 1,000 crore.
However RJ accepts that human pysche when it comes to owning a house.
RJ's current portfolio :
For more details: https://t.co/f6oFooZy5b
RJ has said that he has made the bulk of his wealth by trading and not through long-term investing.
Infact, 80:20 rule applies here, 80% of the wealth is created by only 20% of the stocks in the portfolio.
RJ has always taken concentrated bets.
RJ believes in Trade & Invest Philosophy:
Trade is for creating capital, investing is for growing that capital.
In trading risk is extreme as compared to investing.
Most people think they are an investor however their mind is of a trader.
Trading is : De Fatafat & Le Fatafat
Few trading principles laid down by RJ:
1. Vadhare vadhare levanu, ghatare ghatare bechvanu.
Translated to: Buy when price is rising, sell when it is falling.
2. He practices pyramiding: After buying a stock if it goes up, it simply means the bet on the stock is right and hence he'll start pyramiding.
3. He doesn't believe in averaging his trading bets.
4.Know what to risk & know when to take loss.
5. Make a mistake that you can afford, so that you may live to make another one (Live to fight another day).
6. Know the trend, you can never know the depth (i.e. dnt set the targets, no one knows how far will it go).
7. Markets are always RIGHT.
8. Its not so easy to make money in the markets, and its more difficult to retain it.
9. Trading/Investing Tips are very injurious to financial health.
Thoughts on Leverage:
• Done in a measured manner they are a pleasure, if overdone they are problems
• One has to be emotion-less while using leverage
• There are moments where one should leverage and equally imp to know where one should abstain from using leverage
When it comes to investing:
1. Look at a combination of financials and management quality.
2. Understand the business model.
3. Understand the reasons for creating profits.
4. Galle mein kitna paisa hai: Cash flow of the company.
5. What are the entry barriers?
6. How will the company manage to make profits during challenging times.
7. Assess whether the attitude of the management has changed, as that could be a real game changer.
8. Patience will be tested, but your conviction will be rewarded.
9. Do not have unrealistic expectations from the market, it is not a Mahalaxmi Racecourse.
"If I get 18% p.a. from investing I am a King, if I get 22-24%, I am an Emperor".
Big money is made during big trends.
He had made huge money in spurts viz. year 1989-92, 2003-07, 2009-11 etc.
Conclusion: Strike, when the iron is hot!
If one does not have the financial expertise to understand and invest in business, simply invest in mutual funds where a professional money manager will take care of your funds.
Source: Various articles and videos on youtube
Link for the videos which are used here as snippets:
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